U.S. Department of justice takes action against Bitcoin Mixer

The many years of war, the American government against the Privacy Coins, and Bitcoin Mixer escalated this week after the arrest of Larry Harmon of Coin Ninja who is now accused of money laundering. A statement from the Ministry of justice, that “the attempt to cover virtual currency transactions, in this way [with the help of mixers] is a crime”, it means that Bitcoin Mixer to risk solely for the exercise of their Right to privacy law enforcement.

The Community was shocked on Thursday by the news that the Coin had been arrested Ninja and Dropbit-CEO Larry Harmon under the accusation, to have 311 million dollars of the Darknet Marketplace (DNM) Alphabay washed. Although he had no direct connection to Alphabay, it was recommended by Harmon developed a Helix-Mixer of the DNM. Bitcoin MIxer or a Tumbler not be used by Bitcoin owners legally, your transactions with those of other users, wherein, they offer a degree of Onchain-privacy, the Bitcoin by default. The Mixer can also be used by Criminals for the same purpose.

The U.S. justice Department is investigating the Onchain-privacy, starting with mixers

In Washington, D.C. in the context of a prosecution before the Grand Jury is a nightmare for Harmon and his family (his wife has since been faced with phone threats from Extortionists, the Bitcoin demand), as well as for the employees and customers of Coin Ninja. Dropbit, described as “a Venmo for bitcoin”, sponsored the “What Bitcoin Did a Podcast”, was moderated by Peter McCormack in the industry and a high profile had.

The two companies of the Hamon have to leave your assets to freeze, even the customers who were in the of Dropbit held Lightning-Wallet. But the impact of Harmon’s arrest is threatening to go much further and affect everyone who has ever taken action to improve its privacy through the use of Onchain-obfuscation techniques.

The use of a Bitcoin mixer, is that a crime?

This indictment underlines that the attempt to cover virtual currency transactions, in this way [with the help of a mixer] is a crime“

said the Deputy Prosecutor General of the justice Department, Brian Benczkowski, in a statement on Thursday. A day earlier, the US Secretary of the Treasury Steven Mnuchin said in a statement before the Senate Finance Committee: “We want to make sure that this [crypto-currencies] be used as Equivalent to secret Bank accounts …

We are working together with FinCEN and will introduce new rules to achieve greater transparency, so that the law enforcement authorities where the money goes and that it is not used for money laundering.

In a commentary on the indictment of Larry Harmon, the Bitcoin developer Matt Corallo tweeted:

To create a precedent that it is illegal, tumblers (also known as a “still-to operate to possess poorer-privacy-as-cash-machines”,)/, would be the beginning of the end.

Prominent Bitcoin supporters have long warned that the US regulatory authorities are trying to paralyze the currency, as always, you can, and you will indirectly attack through asymmetrical warfare against stock exchanges and centralized mixer, the operators, under threat of imprisonment can be forced to comply with the regulations; Harmon up to 30 years is threatening if he is convicted. The centralized Bitcoin Mixer the best mixer.io was closed last year under similar circumstances.